A lot of people understand how to buy a house. You go and look at houses, and you look for something you like, and you buy it, but what about if you decide you’d like to build a new home? When you’re building a house, how do you know what you’re getting, what’s the process? Why would you build over buying an already established house?
A lot of investors do think that established property is the only way to go, but there is the opportunity through new homes and house and land packages, and there are some definite advantages of buying a new home or a house and land package over buying established.
The obvious one is stamp duty. On a typical house and land package of around $350,000 or $300,000, you might be saving around about $7,000–$8,000 in stamp duty. When you are building a new house you are only paying stamp duty on the land. The house hasn’t been built when you purchase it, so you’re actually not paying any stamp duty for it.
There’s a good saving there.
First home buyers, for example, will get the first home buyer grant, but as an investor, you also have the opportunity to get fantastic depreciation schedules on new homes, and if you talk to your accountant about that, I’m sure they’ll be able to tell you about how that can offset the savings against your tax, so there’s that advantage as well.
Often we find with house and land packages, that we can build those or put those together for around about 10 to 15 percent less than what it might cost to buy a comparable established property in that area, so you’re taking on a buying property that immediately has 10 to 15 percent equity in it. So that’s another advantage of it. Of course, having a brand new home can also be an advantage over established, because you’re going to have less maintenance costs, so it’s going to cost you less to hold that property. So there are definitely a number of great advantages to buying house and land packages when you’re looking at investment.
Here at Aspiron we have a number of house and land packages available and, our motto is connecting people with properties, so our goal is to help as many people as possible achieve their dreams through property, whether it be established homes or house and land packages, we have access to those and can put together the best outcome for an investor looking to get into the property market.
Give us a call, pop onto our Facebook page or our website, all of details are there. Give us a call and we’re happy to get together, no obligation, chat over a coffee or a cup of tea.